Indian Industries & Trades - Solved Questions (1995-2025)

Question 1: Which of the following benefits are likely to accrue to India from the World Trade Organisation?    [1995]
1. India's share in the world trade is to go up from the present 600 million US dollars to 5 billion US dollars by 2000 AD.

2. It will help boost exports of agricultural commodities from India.

3. India's share in the world trade is likely to triple by the year 2000 A.D.
(a) 1, 2 and 3
(b) 1 and 3
(c) 1 only 
(d) 2 and 3

Question 2: Local supply of coal is not available to:    [1996]
(a) TISCO, Jamshedpur
(b) VSL, Bhadravati
(c) HSL, Durgapur
(d) HSL, Bhilai

Question 3: The number of industries for which industrial licensing is required has now been reduced to:    [1997]
(a) 15
(b) 6
(c) 35
(d) 20

Question 4: Scheme of (i) Urban Micro-Enterprises, (ii) Urban Wage Employment and (iii) Housing and Shelter Upgradation are parts of:    [1997]
(a) Integrated Rural Development Programme
(b) Nehru Rojgar Yojana
(c) Jawahar Rojgar Yojana
(d) Prime Minister's Rojgar Yojana

Question 5: The contribution of India's small scale sector to the gross turnover in the manufacturing sector since 1992 has been of the order of:    [1997]
(a) 40%
(b) 34%
(c) 30%
(d) 45%

Question 6: Which of the following places are known for paper manufacturing industry ? [1997]
1. Yamuna Nagar
2. Guwahati
3. Shahabad
4. Ballarpur
Choose the correct answer using the codes given below:
(a) 1, 2 and 3
(b) 1, 2 and 4
(c) 1, 3 and 4
(d) 2, 3 and 4

Question 7: Match List-I with List-II and select the correct answer:   [1997]

(a) A-3; B-1; C-2; D-4
(b) A-1; B-3; C-4; D-2
(c) A-3; B-1; C-4; D-2
(d) A-1; B-3; C-2; D-4

Question 8: Consider the following statements: [1998]
The price of any currency in international market is decided by the:
1. World Bank
2. Demand for goods/services provided by the country concerned
3. Stability of the government of the concerned country
4. Economic potential of the country in question of these statements:
(a) 1, 2, 3 and 4 are correct
(b) 2 and 3 are correct
(c) 3 and 4 are correct
(d) 1 and 4 are correct

Question 9: Some time back, the Government of India, decided to de-license 'white goods' industry. 'White goods' include:    [1998]
(a) stainless steel and aluminium utensils
(b) milk and milk products
(c) items purchased for conspicuous consumption
(d) soaps, detergents and other mass consumption goods

Question 10: The rough outline map given shows centres of cement industry labelled 1, 2, 3 and 4. Match these centres with the following sets of names:   [1998]

Names:

A. Katni
B. Tirunelveli
C. Sikka
D. Churk

Select the correct answer using the codes given below:
(a) A-3; B- 4; C- 2; D- 1
(b) A-2; B- 4; C- 1; D- 3
(c) A-1; B- 2; C- 4; D- 3
(d) A-2; B- 3; C- 1; D- 4

Question 11: Consider the following statements:    [1999]
Small-scale industries are, in most cases, not as efficient and competitive as the large-scale ones. Yet the Government provides preferential treatment and reservations in a range of products to the small firms because small-scale industries:
1. provide higher employment on a per unit capital deployment basis

2. promote a regional dispersion of industries and economical activities

3. have performed better in export of manufactured products than the large scale ones

4. provide jobs to low-skill workers, who otherwise may not find employment avenues elsewhere
Which of the above statements are correct?
(a) 1 and 4
(b) 1 and 2
(c) 2 and 3
(d) 3 and 4

Question 12: From the balance sheet of a company, it is possible to:    [1999]
(a) judge the extent of profitability of this company
(b) assess the profitability and size of the company
(c) determine the size and composition of the assets and liabilities of the company
(d) determine the market share, debts and assets of the company

Question 13: Match List-I with List-II and select the correct answer using the codes given the lists:    [1999]

(a) A-2; B-1; C-4; D-3
(b) A-2; B-1; C-3; D-4
(c) A-1; B-2; C-4; D-3
(d) A-1; B-2; C-3; D-4

Question 14: The product life cycle from inception to demise is shown in the graph. Match List I with List II and select the correct answer using the codes given below the lists:    [1999]

(a) A-1; B-4; C-2; D-1
(b) A-1; B-4; C-3; D-2
(c) A-4; B-1; C-2; D-3
(d) A-4; B-1; C-3; D-2

Question 15: Consider the following statements:    [1999]
Industrial development in India, to an extent, is constrained by:
1. lack of adequate entrepreneurship and leadership in business
2. lack of savings to invest
3. lack of technology, skills and infrastructure
4. limited purchasing power among the larger masses
Which of the above statements are correct?
(a) 1, 2 and 3
(b) 1, 3 and 4
(c) 2, 3 and 4
(d) 1, 2 and 4

Question 16: Tourism industry in India is quite small compared to many other countries in terms of India's potential size. Which one of the following statements is correct in this regard?    [1999]
(a) Distances in India are too far apart and luxury hotels are too expensive for western tourists.
(b) For most of months India is too hot for western tourists to feel comfortable.

(c) Most of the picturesque resorts in India such as in the North East and Kashmir are, for all practical purposes, out of bounds.

(d) In India, the infrastructure required for attracting tourists is inadequate.

Question 17: Match List-I with List-II and select the correct answer using the codes given below the lists:    [1999]

(a) A - 1; B - 4; C - 2; D - 3
(b) A - 1; B - 4; C - 3; D - 2
(c) A - 4; B - 1; C - 2; D - 3
(d) A - 4; B - 1; C - 3; D - 2

Question 18:  

Assertion (A): Information technology is fast becoming a very important field of activity in India.

Reason (R): Software is one of the major exports of the country and India has a very strong base in hardware.    [1999]
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not a correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Question 19: Consider the following factors regarding an industry    [2001]
1. Capital investment
2. Business turnover
3. Labour force
4. Power consumption
Which of these determine the nature and size of the industry?
(a) 1, 3 and 4
(b) 1, 2 and 4
(c) 2, 3 and 4
(d) 2 and 3

Question 20: 

Assertion (A): India's software exports increased at an average growth rate of 50% since 1995-96.

Reason (R): Indian software companies were cost-effective and maintained international quality.    [2001]
(a) Both A and R are individually true and R is the correct explanation of A
(b) Both A and R are individually true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Question 21: Consider the following states:    [2001]
1. Gujarat
2. Karnataka
3. Maharashtra
4. Tamil Nadu
The descending order of these states with reference to their level of Per Capita Net State Domestic Product is:
(a) 1, 3, 4, 2
(b) 3, 1, 2, 4
(c) 1, 3, 2, 4
(d) 3, 1, 4, 2

Question 22: With reference to the Public Sector Undertakings in India, consider the following statements:    [2002]
1. Minerals and Metals Trading Corporation of India Limited is the largest non-oil importer of the country
2. Project and Equipment Corporation of India Limited is under the Ministry of Industry
3. One of the objectives of Export Credit Guarantee Corporation of India Limited is to enforce quality control and compulsory pre-shipment inspection of various exportable commodities
Which of these statements is/are correct?
(a) 1 only
(b) 1 and 2
(c) 2 and 3
(d) 3 only

Question 23: HINDALCO, an aluminium factory located at Renukut owes its site basically to:    [2002]
(a) proximity of raw materials
(b) abundant supply of power
(c) efficient transport network
(d) proximity to the market

Question 24: Which one of the following committees recommended the abolition of reservation of items for the small scale sector in industry?    [2003]
(a) Abid Hussian Committee
(b) Narasimham Committee
(c) Nayak Committee
(d) Rakesh Mohan Committee

Question 25: With reference to India, which one of the following statements is NOT correct?    [2003]
(a) IPCL is India's largest petrochemical company
(b) RIL is the largest private sector company in India
(c) MTNL is listed on NYSE
(d) BSNL is the first telecom service organization in India to launch a nationwide cellular service at one time

Question 26: Which one of the following statements is NOT correct?   [2003]

(a) India is the second largest producer of nitrogenous fertilizers in the world.
(b) India is the ninth largest steel producing country in the world.
(c) India is the second largest producer of silk in the world.
(d) India ranks third in the world in coal production.

Question 27: During the year 2000-01 which one of the following Industries recorded the highest growth rate in India?    [2003]
(a) Cement
(b) Coal
(c) Electricity
(d) Steel

Question 28: Which one of the following statements is correct?   [2003]
(a) Alliance Air is a wholly-owned subsidiary of Indian Airlines
(b) The Airports Authority of India manages seven of the country's international airports
(c) The Airports Authority of India is the regulatory organisation for enforcing civil air regulations in India
(d) It is the function of Directorate General of Civil Aviation to plan and construct runways and terminal buildings and to provide air safety services

Question 29:
Assertion (A): India does not export natural rubber.

Reason (R): About 97% of India's demand for natural rubber is met from domestic production.   [2004]
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is NOT a correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Question 30: 

Assertion (A): Balance of Payments represents a better Picture of a country economic transactions with the rest of  the world than the Balance of Trade
Reason (R): Balance of Payments takes into account the exchange of both visible and invisible items whereas balance of Trade does not.   [2006]
(a) Both 'A' and 'R', are individually true and 'R' is the correct explanation of 'A'.
(b) Both 'A' and 'R' are individually true but 'R' is not the, correct explanation of 'A' .

(c) 'A' is true but 'R' is false.

(d) 'A' is false but 'R' is true.

Question 31: Which one of the following statements is not correct?    [2005]
(a) Rourkela Steel Plant, the first integrated steel plant in the Public Sector of India was set up with the Soviet Union collaboration.

(b) Salem Steel Plant is a premier producer of stainless steel in India.

(c) Maharashtra Elektrosmelt Ltd. is a subsidiary of the Steel Authority of India Ltd.

(d) Visakhapatnam Steel Plant is a unit of the Rashtriya Ispat Nigam Ltd.

Question 32: Consider the following statements: [2009]
1. MMTC Limited is India's largest international trading organization.

2. Neelachal Ispat Nigam Limited has been set up by MMTC jointly with the Government of Orissa.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Question 33: Which one of the following sets of commodities are exported to India by arid and semi-arid countries in the Middle East?   [2009]
(a) Raw wool and carpets
(b) Fruits and palm oil
(c) Precious stones and pearls
(d) Perfume and Coffee.

Question 34: Which one of the following is not a feature of Limited Liability Partnership firm?    [2010]
(a) Partners should be less than 20
(b) Partnership and management need not be separate
(c) Internal governance may be decided by mutual agreement among partners
(d) It is corporate body with perpetual succession

Question 35: In India, which of the following, is regulated by the Forward Markets Commission?   [2010]
(a) Currency Futures Trading
(b) Commodities Futures Trading
(c) Equity Futures Trading
(d) Both Commodities Futures and Financial Futures Trading

Question 36: What is/are the recent policy initiative(s) of Government of India to promote the growth of manufacturing sector?    [2012 - I]
1. Setting up of National Investment and Manufacturing Zones
2. Providing the benefit of 'single window clearance'
3. Establishing the Technology Acquisition and Development Fund
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Question 37: In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight Core Industries?   [2012 - I]
1. Cement
2. Fertilizers
3. Natural gas
4. Refinery products
5. Textiles
Select the correct answer using the codes given below:
(a) 1 and 5 only
(b) 2, 3 and 4 only
(c) 1, 2, 3 and 4 only
(d) 1, 2, 3, 4 and 5

Question 38: 

Despite having large reserves of coal, why does India import millions of tonnes of coal?     [2012 - I]
1. It is the policy of India to save its own coal reserves for future, and import it from other countries for the present use.
2. Most of the power plants in India are coal-based and they are not able to get sufficient supplies of coal from within the country.
3. Steel companies need large quantity of coking coal which has to be imported.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Question 39: The balance of payments of a country is a systematic record of   [2013 - I]
(a) all import and export transactions of a country during a given period of time, normally a year
(b) good exported from a country during a year
(c) economic transaction between the government of one country to another
(d) capital movements from one country to another.

Question 40: Which one among the following industries is the maximum consumer of water in India?    [2013 - I]

(a) Engineering
(b) Paper and pulp

(c) Textiles
(d) Thermal power

Question 41: Disguised unemployment generally means    [2013 - I]
(a) large number of people remain unemployed
(b) alternative employment is not available
(c) marginal productivity of labour is zero
(d) productivity of workers is low

Question 42: With reference to Balance of Payments, which of the following constitutes/constitute the Current Account? [2014 - I]
1. Balance of trade
2. Foreign assets
3. Balance of invisibles
4. Special Drawing Rights
Select the correct answer using the code given below.
(a) 1 only
(b) 2 and 3
(c) 1 and 3
(d) 1, 2 and 4

Question 43: In India, the steel production industry requires the import of    [2015-I]
(a) saltpetre
(b) rock phosphate
(c) coking coal
(d) All of the above

Question 44: In the 'Index of Eight Core Industries', which one of the following is given the highest weight?   [2015-I]
(a) Coal production
(b) Electricity generation
(c) Fertilizer production
(d) Steel production

Question 45: Which of the following brings out the 'Consumer Price Index Number for Industrial Workers'?    [2015-I]
(a) The Reserve Bank of India
(b) The Department of Economic Affairs
(c) The Labour Bureau
(d) The Department of Personnel and Training

Question 46: Recently, India's first 'National Investment and Manufacturing Zone' was proposed to be set up in    [2016-I]

(a) Andhra Pradesh
(b) Gujarat 

(c) Maharashtra
(d) Uttar Pradesh

Question 47: With reference to pre-packaged items in India, it is mandatory to the manufacturer to put which of the following information on the main label, as per the Food Safety and Standards (Packaging and Labelling) Regulations, 2011?    [2016-I]
1. List of ingredients including additives
2. Nutrition information
3. Recommendations, if any, made by the medical profession about the possibility of any allergic reactions
4. Vegetarian/non-vegetarian
Select the correct answer using the code given below.

(a) 1, 2 and 3
(b) 2, 3 and 4
(c) 1, 2 and 4
(d) 1 and 4 only

Question 48: With reference to 'Quality Council of India (QCI)', consider the following statements:   [2017-I]
1. QCI was set up jointly by the Government of India and the Indian Industry.
2. Chairman of QCI is appointed by the Prime Minister on the recommendations of the industry to the Government.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Question 49: India enacted The Geographical Indications of Goods (Registration and Protection) Act, 1999 in order to comply with the obligations to    [2018-I]

(a) ILO
(b) IMF
(c) UNCTAD
(d) WTO

Question 50: Consider the following countries: [2018-I]
1. Australia
2. Canada
3. China
4. India
5. Japan
6. USA
Which of the above are among the 'free-trade partners' of ASEAN ?
(a) 1, 2, 4 and 5
(b) 3, 4, 5 and 6
(c) 1, 3, 4 and 5
(d) 2, 3, 4 and 6

Question 51: Consider the following statements    [2018-I]
1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
2. The Government does not impose any customs duty on all the imported edible oils a special case.
Which of the statements given above is/are correct
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Question 52: Consider the following statements: [2019-I]
1. Coal sector was nationalized by the Government of India under Indira Gandhi.
2. Now, coal blocks are allocated on lottery basis.
3. Till recently, India imported coal to meet the shortages of domestic supply, but now india is self-sufficient in coal production.
Which one of the following statements given above is/ are correct?
(a) 1 only
(b) 2 and 3 only
(c) 3 only
(d) 1,2 and 3

Question 53: With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristics ?    [2020-I]
(a) It is the investment through capital instruments essentially in a listed company.
(b) It is largely non-debt creating capital flow.
(c) It is the investment which involves debt-servicing.
(d) It is the investment made by foreign institutional investors in the Government securities.

Question 54: With reference to the international trade of India at present, which of the following statements is/are correct?   [2020-I]
1. India's merchandise exports are less than its merchandise imports. 
2. India's imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.
3. India's exports of services are more than its imports of services.
4. India suffers from an overall trade/current account deficit.

Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 and 4 only
(c) 3 only
(d) 1, 3 and 4 only

Question 55: With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct?    [2020-I]
1. Quantitative restrictions on imports by foreign investors are prohibited.
2. They apply to investment measures related to trade in both goods and services.
3. They are not concerned with the regulation of foreign investment.
Select the correct answer using the code given below :
(a) 1 and 2 only 
(b) 2 only
(c) 1 and 3 only 
(d) 1, 2 and 3

Question 56: Consider the following statements:(2022)

1. Tight monetary policy of US Federal Reserve could lead to capital flight.
2. Capital flight may increase the interest cost of firms with existing External Commercial Borrowings (ECBs).
3. Devaluation of domestic currency decreases the currency risk associated with ECBS. 

Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3 

Question 57: Consider the following statements:(2022)

1. In India, credit rating agencies are regulated by Reserve Bank of India.
2. The rating agency popularly known as ICRA is a public limited company.
3. Brickwork Ratings is an Indian credit rating agency.

Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Question 58: With reference to the 'Banks Board Bureau (BBB)', which of the following statements are correct? (2022)

1. The Governor of RBI is the Chairman of BBB.
2. BBB recommends for the selection of heads for Public Sector Banks.
3. BBB helps the Public Sector Banks in developing strategies and capital raising plans.

Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3 

Question 59: With reference to Convertible Bonds, consider the following statements: (2022)

1. As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.
2. The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2 

Question 60: Consider the following statements: (2023)
Statement-I: Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax, but the dividend is taxable.
Statement-II: InviTs are recognized as borrowers under the 'Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002'.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-1
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-1
(c) Statement-1 is correct but Statement-II is incorrect
(d) Statement-I is incorrect Statement-II is correct

Question 61: Which one of the following best describes the concept of 'Small Farmer Large Field'?(2023)
(a) Resettlement of a large number of people, uprooted from their countries due to war, by giving them a large cultivable land which they cultivate collectively and share the produce
(b) Many marginal farmers in an area organize themselves into groups and synchronize and harmonize selected agricultural operations
(c) Many marginal farmers in an area together make a contract with a corporate body and surrender their land to the corporate body for a fixed term for which the corporate body makes a payment of agreed amount to the farmers
(d) A company extends loans, technical knowledge and material inputs to several small farmers in an area so that they produce the agricultural commodity required by the company for its manufacturing process and commercial production

Question 62: Consider the following statements with reference to India :(2023)

1. According to the 'Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the 'medium enterprises' are those with investments in plant and machinery between ₹ 15 crore and ₹ 25 crore.
2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Question 63: Consider the following airports : (2024)
1. Donyi Polo Airport
2. Kushinagar International Airport
3. Vijayawada International Airport
In the recent past, which of the above have been constructed as Greenfield Projects?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Question 64: With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements : (2024)
1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.
2. CSR rules do not specify minimum spending on CSR activities.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Question 65: Consider the following statements: (2025)
I. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR).  
II. In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature. 
Which of the statements given above is/are correct?   
(a) I only 
(b) II only 
(c) Both I and II 
(d) Neither I nor II